Customer Relationship Management (CRM) at IKEA
Customer relationship management systems (CRM) can be used for many purposes, including but not limited to contact management, sales management, and increased productivity. The primary objective of any customer relationship management system is to boost professional connections. In general, you could say that CRM brings together the best parts of relationship management and information technology. It makes sure that the buyer and seller will work together for a long time. This means planning, a process, and a set of tools to build relationships with customers throughout the buying lifecycle.
Introduction
Customer relationship management (CRM) is a method for organizing a company’s interactions with current and potential clients. A Customer Relationship Management (CRM) system facilitates communication with customers, streamlines business operations, and boosts revenue. CRM is a result of the fact that marketing is moving away from focusing on the product and toward focusing on the customer (Chatterjee et al.,2022).
CRM as a technology: Used to track, report, and analyze interactions between a business and its customers or clients. Cloud computing is used to store and serve it. Another name for this is customer relationship management.
CRM as a Method: It is more than just a strategy; it’s a way of thinking about how to interact with current and potential clients.
CRM as a Plan: Planned approaches to interacting with current and potential clients are at the heart of customer relationship management
MANAGING CUSTOMER RELATIONSHIPS AT IKEA
IKEA is a store that sells things for decorating your home. The company has a clear goal that says, “The IKEA vision is to make people’s everyday lives better.” This was Ikea’s main customer relationship management strategy, but in the 21st century, when technology is changing quickly, they have added an IT application to CRM called the mobile loyalty program. IKEA has started several programs to find out what customers like and to get more people to go to their stores. One of these is a mobile loyalty program. It’s easy to sign up for a mobile loyalty program (Bull, 2003).
Strategy-KM and data management
Knowledge management has little to do with technology and everything to do with people management and the facilitation of the application of employee expertise in the resolution of business issues. The Swedish furniture giant employs a codification approach to managing its internal database of information. The company creates manuals, but it also makes an effort to be a learning organization, so the manuals are regularly revised and updated. We can investigate past dealings with Ikea customers thanks to the CRM system. Successful implementation has the potential to strengthen customer relationships, increase customer loyalty over time, and fuel sustained revenue growth. Businesses can better target their audiences by managing customer relationships, developing effective sales strategies, and optimizing their most productive routes. The quality of your business-to-business data can only increase if you implement effective CRM management practices.
Organizational Culture
Organizational culture shows how a company acts overall and wants theworld to see them, and how the company moves. IKEA’s organizational culture is driven more by things inside the company than by things outside it (Kumar et al.,2017).
To have a successful business, IKEA must first have a thriving company culture. It helps us stand out from the competition and improves the IKEA experience for more customers by fostering an atmosphere of trust throughout the company. In short, a strong IKEA culture motivates us, pushes us, and gives us the power to:
· Work together, so that you can get to know each other better.
· Find better ways to do things, creating an environment that helps us be more entrepreneurial.
· Take responsibility, make decisions, and not give up on things.
· Lead by example, which means getting the best out of ourselves and others.
Organizational Processes
IKEA is a system by which raw materials are changed into finished products at several different stages of the company’s operations. The term “monitoring” refers to the practice of checking in on the development and production of IKEA goods to ensure that everything is running smoothly. Whether or not the system is making progress toward the intended goal can be determined through monitoring, which is a form of controlling and evaluating the system.
Management & Leadership
The leadership style at IKEA is very paternalistic. Paternalistic managers are more concerned with their employees’ emotional well-being and opinions. Managers take an interest in their employee’s well-being, and in many ways, they serve as surrogate parents to them (pater means father in Latin).
Technology
Online customer relationship management (CRM) software is used at Ikea. The invention of customer relationship management systems and cloud computing has reshaped the entire industry. The shift from on-premises to cloud-based customer relationship management systems is probably the most significant change in this area in recent years. Businesses around the world are beginning to see the benefits of moving their information, applications, and services to the cloud, where they can be accessed from any computer. Below are some advantages of a cloud-based CRM system (Hsin Chang, 2007).
· It can be deployed more quickly.
· Minimize investment while rapidly expanding
· Access your files from any location and any gadget.
· Accumulated effort
Politics
Numerous political factors can impact IKEA’s bottom line, including government attitudes toward the brand and political stability. The global furniture retailer’s bottom line can be affected by political factors such as bureaucracy, corruption, home-market lobbying, and import restrictions in the markets where it operates.
Benefits
There are many benefits and advantages to using CRM because it collects and organizes data about interactions with customers, makes that data accessible and actionable for all, and makes it easier to analyze (Bull, 2003).
Some of CRM’s many advantages and benefits are:
· Streamlined methods for keeping in touch
· Teamwork across departments
· Enhanced Efficiency
· Management of sales operations that is empowered
· Good predictions of future sales
· Dependable reporting
· Enhanced sales metrics
· Improvements in both customer satisfaction and loyalty
· Greater Return on Investment from Marketing
· Increased value in our offerings
Challenges
· Costly and Time-consuming: It can take a lot of time and money to set up a customer relationship management system.
· Users Aren’t Taking Advantage of CRM Systems: Getting staff to adopt CRM software is a major challenge.
Opportunities
· By using CRM Ikea can build long-term relationships with customers.
· CRM is not only an excellent asset for locating and cultivating potential and new customers, but it is also an excellent instrument for maintaining the satisfaction of the customers you already have (Kumar, et a.,2017).
· It is of the utmost importance to have customer relationship management (CRM) software that has built-in functionality related to GDPR to meet the data privacy requirements of the new EU regulation.
Conclusion
IKEA is a retailing company that sells a wide range of home furnishings and decor items. The company is guided by a strong vision, which can be found on its website and reads as follows: “The IKEA vision is to create a better everyday life for many people (Bull, 2003). This was Ikea’s main customer relationship management strategy, but in the 21st century when technology is changing quickly, they have added an IT application to CRM called the mobile loyalty program. Using customer relationship management software help Ikea to centralize, enhance, and streamline its interactions with customers. The deeper you understand your customers, the more devoted they will be as customers (Koniorczyk, 2015).
Reference
Koniorczyk, G. (2015). Customer knowledge in (co) creation of product. A case study of IKEA. Journal of Economics & Management, (22), 107–120.
Chatterjee, S., Chaudhuri, R., & Vrontis, D. (2022). AI and digitalization in relationship management: Impact of adopting AI-embedded CRM system. Journal of Business Research, 150, 437–450.
Bull, C. (2003). Strategic issues in customer relationship management (CRM) implementation. Business process management Journal.
Kumar, V., & Reinartz, W. (2018). Customer relationship management. Springer-Verlag GmbH Germany, part of Springer Nature 2006, 2012, 2018.
Hsin Chang, H. (2007). Critical factors and benefits in the implementation of customer relationship management. Total quality management, 18(5), 483–508.
